Ekinops acquires Olfeo to enter SASE market: A strategic pivot into European network cybersecurity

Ekinops (EPA: EKI), a French telecommunications technology firm long known for its optical transport and enterprise access solutions, has completed its acquisition of 100% of Paris-based cybersecurity software company Olfeo. The deal, finalized on May 30, 2025, represents a major strategic shift for Ekinops as it enters the fast-growing Secure Access Service Edge (SASE) and Security Service Edge (SSE) markets. The transaction, fully financed through internal cash reserves and a dedicated syndicated credit line, positions Ekinops as a rising European player in unified network cybersecurity—a sector projected to surpass $9 billion globally in 2025.

The move reflects a broader industry shift where telco vendors are repositioning themselves as full-stack digital infrastructure providers. Amid increasing regulatory demands for sovereign cybersecurity solutions in Europe and heightened risks from remote work and cloud adoption, integrated offerings that combine secure connectivity and threat protection are now a competitive necessity.

What Does Olfeo Bring to the Table in Terms of Products and Revenue?

Olfeo, founded in 2003 and headquartered in Paris, specializes in enterprise-grade web security solutions delivered via both SaaS and on-premises models. With approximately 60 employees—half of whom are in R&D—Olfeo has built a differentiated portfolio incorporating technologies such as Secure Web Gateway (SWG), Cloud Access Security Broker (CASB), DNS-layer protection, and Data Loss Prevention (DLP). These layered tools serve over 500 customers spanning government entities, healthcare providers, local authorities, and mid-sized enterprises across France.

In calendar year 2024, Olfeo generated €6.3 million in Annual Recurring Revenue (ARR) with EBITDA margins exceeding 20%. This revenue mix is largely subscription-based, offering predictable cash flows and a natural fit with Ekinops’ software-driven transformation goals. Importantly, Olfeo’s existing leadership, including founder and CEO Alexandre Souillé, will remain to lead the cybersecurity division within Ekinops, ensuring continuity and focus during integration.

How Is the Cybersecurity Market Evolving for Mid-Sized Enterprises?

The global SASE and SSE markets are among the fastest-growing segments in enterprise IT. As businesses increasingly adopt hybrid and cloud-native architectures, the demand for secure, seamless, and regulation-compliant access to digital infrastructure has surged. Analysts estimate the SASE market will grow at a compound annual growth rate (CAGR) of 13%, hitting over $9 billion in global value by the end of 2025. Within that, the “Unified SASE” segment—which integrates networking and cybersecurity into one vendor solution—is expected to exceed $600 million this year, with a CAGR of 27%.

Ekinops plans to enter this unified segment by 2026, targeting small and medium businesses (SMBs and SMEs) with a bundled offering that combines Olfeo’s cybersecurity tools with its own existing network access solutions. The company’s ability to leverage long-standing relationships with telecom operators as distribution partners will be critical in reaching this fragmented and under-served customer base.

What Does the Acquisition Signal for Ekinops’ Business Model and Growth Strategy?

The acquisition of Olfeo marks a pivot from Ekinops’ traditional position as a hardware-anchored vendor to a software and services-oriented firm. The combined entity is now positioned to offer complete edge-to-cloud secure access solutions, aligning with European digital sovereignty goals and public sector procurement trends. Notably, EU policy frameworks such as the NIS2 Directive and the Digital Operational Resilience Act (DORA) are expected to create compliance-driven demand for sovereign cybersecurity platforms—particularly those developed and hosted in the European Union.

Ekinops has already indicated it will pursue a “Unified SASE” roadmap tailored for mid-market organizations that often lack in-house cybersecurity expertise. Such customers are increasingly seeking plug-and-play security offerings from trusted connectivity providers. With Olfeo’s existing customer base and proven technology stack, Ekinops may now cross-sell its networking solutions while improving margins through high-value software subscriptions.

How Have Markets Reacted to the Acquisition of Olfeo?

Investor sentiment toward Ekinops’ move into cybersecurity has been cautiously optimistic. Following the deal’s announcement, Ekinops’ stock (EPA: EKI) saw moderate gains in Paris trading, although significant re-rating may depend on integration outcomes and Q2 performance guidance. Domestic institutional investors have shown increased interest in the stock, drawn by the potential for ARR growth and value creation from a vertically integrated product suite.

Foreign institutional investors (FII) have remained neutral thus far, possibly awaiting more detailed execution plans and customer traction updates. However, several French brokerage firms have issued preliminary “Accumulate” or “Buy” recommendations, citing the strategic logic of the deal and the growth potential in European cybersecurity markets.

The stock’s current valuation remains tied to its legacy networking business, but forward multiples could expand if the company executes successfully on its SASE roadmap and demonstrates higher software revenue contribution.

What Risks and Opportunities Lie Ahead for Ekinops Post-Olfeo Integration?

The key opportunity for Ekinops lies in becoming a credible, European-made alternative to dominant American cybersecurity players such as Palo Alto Networks, Cisco, and Zscaler. The company’s advantage is not just technological but also geopolitical; regulatory bodies and enterprise buyers are actively prioritizing sovereign and GDPR-compliant vendors, especially in critical sectors like healthcare, finance, and government.

On the risk side, integrating a high-tech cybersecurity firm into a legacy telecom infrastructure business presents operational and cultural challenges. Ekinops will need to retain top cybersecurity talent, maintain rapid innovation cycles, and navigate product roadmap alignment to avoid cannibalization or dilution of brand positioning. Moreover, competition is intensifying in the SASE space, with both established players and startups vying for mid-market dominance.

To mitigate these risks, Ekinops has emphasized that Olfeo’s team will retain operational autonomy under the larger corporate umbrella. Additionally, by consolidating Olfeo into financial reporting from June 1, 2025, Ekinops aims to quickly reflect the revenue impact and offer clarity to investors.

What Should Investors Expect Going Forward?

Looking ahead, Ekinops may use this acquisition as a blueprint for further bolt-on deals in the cybersecurity or enterprise software space. With a dedicated growth financing line already in place, the company could pursue additional targets in areas like endpoint security, identity management, or AI-powered threat detection—especially if they align with its mid-market and telecom distribution model.

For long-term investors, the key indicators to watch will include cross-sell conversion rates, expansion of ARR from cybersecurity, customer churn, and average deal size across bundled offerings. Analysts also expect upcoming earnings calls to shed light on the initial performance of the combined entity and management’s refined revenue guidance for FY2025 and beyond.

If executed well, this strategic pivot could push Ekinops into a higher-margin, higher-multiple valuation band, supported by recurring revenue streams and growing addressable markets.